Oaktree extends maturity, makes other adjustments in fifth amendment to credit agreement

By Rebecca Melvin

New York, Dec. 18 – Oaktree Capital Group LLC's subsidiaries Oaktree Capital Management, LP, Oaktree Capital II, LP, Oaktree AIF Investments, LP and Oaktree Capital I, LP entered into a fifth amendment to their existing credit agreement on Dec. 13 with Wells Fargo Bank, NA as administrative agent and the other lenders, according to an 8-K filing with the Securities and Exchange Commission.

Among other things, the amendment extends the maturity of the agreement to Dec. 13, 2024 from March 29, 2023. It also increases the revolving loan commitment to $650 million from $500 million and provides for the refinancing of term loans outstanding in an aggregate principal amount of $150 million.

Pricing can range from Libor plus 75 basis points to 150 bps based on debt ratings, and the commitment fee can range from 6 bps to 15 bps based on debt ratings. When there is no debt rating, pricing can range from Libor plus 75 bps to 150 bps and the commitment fee can range from 6 bps to 15 bps, both based on the combined leverage ratio.

The amendment also increases the assets under management covenant threshold to $65 billion from $60 billion and makes certain other amendments to the provisions of the credit agreement.

All of the borrowers are owned directly or indirectly by Oaktree Capital Group Holdings, LP and Brookfield Asset Management Inc. Brookfield holds all of the class A common units of Oaktree Capital Group, which represent all of the common economic interests in the company.

Wells Fargo Bank, NA is the administrative agent for a 13-bank syndicate and letter-of-credit issuer and swingline lender. Wells Fargo Securities, LLC is the lead arranger and lead bookrunner.

Oaktree Capital is a Los Angeles-based asset management firm.

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